Which of the Following Is Not a Feature of a Dividend

Multiple Choice

Which of the following is not a feature of a dividend reinvestment plan?

A) Stockholders have the option of participating in dividend reinvestment plans.
B) Companies can provide stock for dividend reinvestment plans by buying it on the open market.
C) Dividends that are put in a dividend reinvestment plan are tax deferred until the stockholder sells the stock.
D) Companies can issue new stock for dividend reinvestment plans and avoid floatation costs.
E) A dividend reinvestment plan provides an additional source of equity capital if the companies fund it with new stock.